Global stock markets don't like the China devaluation

There are lots of different explanations. It could be seen as a move to boost falling exports, to prepare for a US interest rate rise or just to give the currency more flexibility to move in the future as growth slows.

But the UK, EU and global stock markets do not like it. Imports to China will get a bit more expensive and less attractive to consumers.

Here's the FTSE down over 1% today so far:

Google

The French CAC index is falling even further, dropping more than 2%:

Google

While the German stock market is having a similar freakout today, down 2.08% at the time of writing:

Bloomberg

Finally, the Hang Seng Index in Singapore closed down 2.38% on the news:

Google

Some analysts think China will keep cutting, which will mean stocks may keep falling.